Ranvir's Portfolio

[ranvir]

Dodla Dairy ( very very bullish commentary ) -

Q4 and FY 24 concall highlights -

Q4 financial outcomes -

Sales - 787 vs 724 cr, up 9 pc
EBITDA - 75 vs 33 cr, up 123 pc ( margins @ 9.6 vs 4.7 pc )
PAT - 47 vs 22 cr ( up 108 pc )

Share of sales from VAP @ 28 vs 27 pc YoY. Sale of Value Added products increased by 19 pc YoY ( @ 221 cr for Q4 out of which curd sales were 182 cr )

Q4 saw an adverse impact of write down of inventories to net realisable value. This had an impact of (-) 24 cr on the gross profit

Cash and Cash Equivalents stood @ 286 cr as on 31 Mar 24. Gross Debt stood at 44 cr

Total capacity @ 24 Lakh Liters per day

97 pc of milk procured directly from farmers

No of standalone Dodla dairy parlours now @ 604 vs 580 in Mar 23

Company commissioned 1 lakh lit per day dairy plant in Kenya in Q4 FY 24

Expanded capacities @ Orgafeed ( cattle feed plant ) from 80 MTPD to 480 MTPD in Q2 FY 24

Management is confident that the write down / provisions made in Q4 will hold the company in good state in the coming Qtrs ( as it is likely to be reversed in FY 25 )

EBITDA margins for FY 25 should be 9 pc and above ( a key positive - imho )

Expecting milk procurement prices to stabilise near current levels

Expect new Kenyan capacity utilisation to be around 35 pc plus for FY 25

Avg milk procurement and realisation prices for Q4 at Rs 37 and Rs 57 respectively. Last FY, these were Rs 37 and Rs 54 respectively

Guiding for a 10-12 pc revenue growth in FY 25 mainly led by - value added products + sales from cattle feed plant + sale from the new Kenya plant

YoY Growth in Ice-Creams in FY 24 was 33 pc !!! ( although on a small base ). Aim to maintain these growth rates in FY 25 also

Animal feed revenues for FY 24 was around 83 cr. Targeting a 200 cr revenue from animal feed in FY 25 !!!

Disc: holding, added recently, not SEBI registered, biased

[ranvir]

JB Chemicals and Pharma -

Q4 and FY 24 results and concall highlights -

Q4 financial outcomes -
Revenues - 862 vs 762 cr ( up 13 pc )
Gross profit @ 561 cr, Gross margins up 130 bps to 65.2 pc
EBITDA - 198 vs 164 cr ( up 16 pc, margins @ 24.4 vs 23.8 pc )
PAT - 126 vs 88 cr ( up 43 pc )

Breakdown of revenues -

Domestic formulations - 465 cr, ( up 22 pc - including the acquired opthal portfolio. Organic India growth @ 13 pc )

International formulations - 267 cr, up 4 pc
( lower growth in international business as the company has made a strategic choice to De-Focus on their South African tender business )

CMO ( of Lozenges for global companies ) - 109 cr
( CMO business 100 cr / qtr milestone for the first time )

APIs - 21 cr

Domestic : International sales breakup for Q4 @ 54 : 46

FY 24 financial outcomes -

Revenues- 3484 vs 3149 cr
EBITDA- 897 vs 696 cr ( margins @ 27 vs 24.4 pc )
PAT- 553 vs 410 cr ( up 25 pc )

Gross Debt on 31 Mar @ 357 vs 548 cr
Cash and Cash equivalents @ 464 vs 282 cr
( basically, the company is now net cash positive by 107 cr )

Capex for FY 24 stood @ 135 cr, due expansion of lozenges facility at Daman

Company had acquired 15 Ophthalmology brands from Novartis for 964 cr in Dec 23

JB Chemicals is now ranked 22nd in IPM

Company’s major brands and their annual sales -

Cilacar franchise - 600 cr +
Metrogyl franchise - 300 cr +
Sporolac franchise - 120 cr +
Rantac franchise - 400 cr +
Nicardia franchise - 200 cr +
Azmarda - 70 cr +

MR productivity @ Rs 7 lakh / MR / month

Company is now ranked No 8 in the cardiac mkt and is the fastest growing company in this segment

Company is guiding for an EBITDA margin band of 26-28 pc for FY 25 ( vs earlier guidance of 25-27 pc band )

CMO business should grow at > 13-15 pc for FY 25. Have recently commercialised Immunity booster lozenges in FY 24. Should commercialise Melatonin based Lozenges in FY 25

Brand - Razel ( generic name - rosuvastatin, acquired from Glenmark Pharma in 2022 ) is also growing at 20 pc plus rates

Company believes that the Ophthalmic brands acquired from Novartis were previously under invested and under leveraged. Company has increased the MR count for the Opthal portfolio from 75 to 105

For India business, company is guiding for mid to high teen growth in FY 25 ( including the Opthal portfolio )

For international business ( minus CDMO, company is guiding for 9-10 pc growth )

Company is open to both in-licensing and acquisitions of brands to further improve growth rates ( since the company is again net cash positive )

New organic launches contributed to 3 pc of sales in FY 24. Same should continue in FY 25 as well

Expect the Opthal business to clock revenues of 180-200 cr for FY 25

Acute business in FY 24 was subdued. Expect this to mean revert in FY 25

Company doesn’t face any Chinese CMO competition for their Lozenges business - that’s an added advantage

Taking a lot of initiatives to improve the operating matrices of the Russia + CIS business. Hopeful of seeing tangible improvements going forward

Other expenses in Q4 were higher due increased logistics cost due Red Sea issues and the Novartis brands - integration related costs

Aim to take the CDMO business to 800 cr/yr kind of annual run rate in 3-5 yrs

Disc : looking to add on dips as current valuations may be on the higher side, not SEBI registered, biased, not a buy/sell recommendation

[ranvir]

Alembic Pharma -

Q4 and FY 24 concall and results highlights -

Q4 outcomes -

Revenues - 1517 vs 1406 cr, up 8 pc
EBITDA - 260 vs 204 cr ( up 29 pc, margins @ 17 vs 14 pc )
PAT - 178 vs 153 cr, up 17 pc

FY 24 outcomes -

Revenues - 6229 vs 5653 cr
EBITDA - 932 vs 682 cr ( margins @ 15 vs 12 pc YoY )
PAT - 616 vs 342 cr

FY 24 Sales breakup -

India branded - 35 pc - 2200 cr ( includes the Veterinary business ) - grew by 7 pc in FY 24

US generics - 28 pc - 1730 cr - grew by 10 pc in FY 24

RoW formulations - 17 pc - 1052 cr - grew by 23 pc in FY 24

APIs - 20 pc - 1246 cr - grew by 7 pc in FY 24

India business -

Has grown at 11.4 pc CAGR for last 4 yrs
15 pc is under NLEM
Company’s 4 brands have sales > 100 cr
Total MRs @ 5000 +
16 pc of India sales come from Veterinary segment and 30 pc from acute therapies
Alembic is 18th largest Pharma company in India

Veterinary business ( operating in livestock and poultry segment ) has grown at a CAGR of 25 pc for last 4 yrs - now @ 355 cr / yr

US business -

7 products launched in FY 24 taking the total products launched to 147
25+ product launches planned in FY 25
No major Capex planned in next few yrs
Company’s base US business is about $ 200 million. Aiming to build up on this base

RoW business -

Has grown @ 21 pc CAGR for last 4 yrs
Company exports to - Europe, Canada, Australia,Brazil and South Africa
Currently ramping up operations in Chile, Middle East

APIs -

Supplying APIs to 60+ countries globally
( however, main focus is on regulated markets )
Has grown @ 15 pc CAGR for last 4 yrs
Future capacity expansion is on track

R&D expenses for FY 24 @ 480 cr @ 7.6 pc of sales

Current manufacturing base -
5 facilities - Formulations
2 facilities - APIs

Gross Debt now at 430 cr vs 620 cr on 31 Mar 23. Cash on books @ 120 cr

Company’s domestic business growth was mainly led by - gynae, veterinary, opthal, metabolic, GI, Cardio segments

Growth in anti-infectives, respiratory were tepid in the domestic mkts - pulling down overall domestic growth for the company

Expecting good ramp up and operational efficiencies to kick in for the US business in FY 25

Expecting strong growth momentum to continue for RoW business ( ie > 20 pc growth or thereabouts )

Confident of outgrowing the IPM for FY 25

Capex plan for FY 25 @ 300 cr or so - mainly towards de-bottlenecking and maintenance

As US business ramps up, company level EBITDA margins may to go 20 pc kind of levels due better utilisation of facilities ( provided there is no steep price erosions in US )

Disc : looking for dips in the stock price to start accumulating, biased, not SEBI registered, not a buy / sell recommendation

[ranvir]

KOPRAN -

Q4 and FY 24 results and concall highlights -

Q4 outcomes -

Revenues - 186 vs 158 cr, up 18 pc
EBITDA - 22 vs 12 cr, up 76 pc ( margins @ 12 vs 8 pc )
PAT - 19 vs 7 cr, up 168 pc

FY 24 outcomes -

Revenues - 615 vs 551 cr
EBITDA - 74 vs 52 cr ( margins @ 12 vs 9 pc )
PAT - 51 vs 27 cr

Total API sales @ 94 cr vs 76 cr YoY ( exports @ 50 pc )

Total formulations sales @ 89 cr vs 76 cr YoY ( all exports )

Company has a product basket of 26 commercialised APIs. Company is a major player in Carbapenems and is a leader in Atenolol. Other APIs made by the company include - Macrolides, Cephalosporins, Pregabalin. All API blocks are located at their plant @ MIDC Mahad, Maharashtra

Formulations plant located @ Khopoli, Maharashtra. It’s WHO compliant. Also approved by US FDA, EU GMP for non-sterile products

Company’s new API plant is ready @ Panoli
(Gujarat). Expected to start commercial production in Q3 FY 25

Company is guiding for 18 - 20 pc revenue growth without factoring in anything from the new Panoli plant. Also guiding for 100 cr EBITDA without the Panoli plant

Company’s gross margins stay in the band of 32-37 pc depending on competition from China, general demand scenario, RM prices etc

Company has submitted validation batches of Atenolol to the largest Atenolol ( anti-hypertensive ) - formulation player in US. Expect the commencement of commercial supplies in about 6 months from now. Also expect the commencement of supplies of Nitroxoline ( antibiotic ) into EU mkts wef June 24

Not looking at any major Capex for this FY. Next leg of Capex is expected at Panoli - ie addition of a new block, commencing sometime next FY. Capex for next 3-4 yrs shall only be brownfield - ie at existing facilities

Disc : hold a tracking position, looking out for margin expansion, biased, not SEBI registered

[ranvir]

Godrej Agrovet -

Q4 and FY 24 concall and results highlights -

Q4 outcomes -

Revenues - 2134 vs 2095 cr, up 2 pc
EBITDA - 158 vs 87 cr, up 81 pc, margins @ 7.4 vs 4.2 pc
PAT - 66 vs 23 cr, up 180 pc

FY 24 outcomes -

Revenues - 9561 vs 9374 cr, up 2 pc
EBITDA - 743 vs 630 cr, up 18 pc, margins @ 7.8 vs 6.7 pc
PAT - 359 vs 295 cr, up 21 pc

Segment wise sales, EBITDA -

Animal feed - 5008 vs 4957 cr, EBITDA @ 231 vs 176 cr. Good growth seen in cattle feed and fish feed segments partly offset by poultry feed segment

Vegetable Oils - 1221 vs 1298 cr, EBITDA @ 173 vs 248 cr. This segment saw margin compression due lower output prices

Crop Protection - 815 vs 596 cr, EBITDA @ 254 vs 74 cr. Good performance driven by higher sales of In-House and In-Licensed products

Astec Life - 458 vs 628 cr, EBITDA @ NIL vs 89 cr
Business is showing signs of recovery in Q4 ( in CDMO segment ). First three Qtrs were very tough for the generic business

Creamline Dairy - 1573 vs 1501 cr , EBITDA @ 67 cr vs (-) 11 cr. Dairy segment witnessing a structural turnaround led by cost efficiencies and increase in share of value added products to 36 pc of total sales ( LY it was 32 pc )

Godrej Tyson Foods - 986 vs 1003 cr , EBITDA @ 71 vs 34 cr. Branded business grew by 15 pc in FY 24. Aim to take the branded business to 80 pc of the total before FY 28

Company seeing moderation in fish feed prices in Q1

Seeing some stabilisation in Palm oil prices. Don’t see them falling any further this season

Some new CDMO products are likely to be commercialised wef Jul/Aug at Astec Lifesciences. CDMO business should continue to do well in FY 25 as well. Yet to see a recovery in the generic business. CDMO business is likely to cross > 50 pc of total Astec’s business in FY 25

Creamline Dairy’s business hit an EBITDA margin of 8 pc in Q4. Aim to take the percentage sales of value added products from 36 to 40 pc in FY 25. Company’s focus continues to be on value added products

Expect good growth to continue in cattle and fish feed segment. Growth in poultry segment is a lot more challenging as the industry is much more organised. Animal feed business’s margins were highest in Q4. Company expects the same to continue in FY 25 as well. EBITDA / Ton for animal feed was 1525. FY 25’s EBITDA / Ton is expected to be much better

Yummeiz brand and Real good chicken operate at EBITDA margins of 35 and 15 pc respectively. The EBITDA margins of non-branded live bird business varies between (-) 25 to (+) 25 pc

Earlier the company was into plantation and extraction of crude palm and palm kernel oil. Now they also have solvent extraction and refining plants. They aim to keep adding value to this segment to de-commoditise the business

Consol Capex guidance for FY 25 @ 250 - 300 cr

Disc: hold a small tracking position, biased, not SEBI registered

[ranvir]

Jyothy Labs -

Q4 results and concall highlights -

Q4 outcomes -

Revenues - 660 vs 617 cr, up 7 pc ( volume growth @ 7 pc )
Gross Margins @ 49.5 vs 45.7 pc
EBITDA - 108 vs 91 cr, up 19 pc ( margins @ 16 vs 15 pc )
PAT - 78 vs 59 cr, up 31 pc

Advertisement and Promotional spends @ 60 vs 46 cr ( at 9 pc of sales vs 7.5 pc of sales )

FY 24 outcomes -

Revenues - 2757 vs 2486 cr, up 11 pc ( volume growth @ 9 pc )
Gross Margins @ 49 vs 42 pc
EBITDA - 480 vs 316 cr, up 52 pc ( margins @ 17 vs 13 pc )
PAT - 369 vs 240 cr, up 54 pc

Advertisement and promotion spends @ 228 vs 174 cr, up 30 pc ( at 8.3 vs 7 pc of sales YoY )

Cash on balance sheet @ 618 cr

Breakup of revenues, full yr growth -

Fabric care ( main wash ) - 34 pc, grew by 12 pc
Fabric care ( post wash ) - 9 pc
Household Insecticides - 11 pc, sales were flat in FY 24
Personal Care - 9 pc, up 21 pc
Dishwashing - 33 pc, grew by 8 pc
Others - 4 pc

Brands … Mkt share
Exo … 14 pc
Pril … 13 pc
Ujala Detergent … 23 pc ( in Kerala )
Ujala Whitener … 84 pc
Maxo … 8 pc in Liquids, 23 pc in Coils

Other Promising brands - Henko, Ujala - Crisp and Shine, Margo, Mr White, More Light

Expanded direct distribution reach to 12 lakh outlets vs 11 lakh outlets in the previous year. Will continue to expand direct distribution by 8-10 pc / yr for the foreseeable future

New launches in FY 24 included - Henko Liquids, Ujala Liquid detergent, Margo Neem Naturals (launched 3 new Margo variants this yr)

Seeing gradual pickup in the rural markets - augurs well for next FY

Both - Ujala and Henko liquid detergents are doing well - in South of India Mkts and Modern trade

Company has lined up a few new product launches. Did not disclose their names / categories

Aiming for 16-17 pc EBITDA margins for full FY 25 after spending aggressively behind existing brands ( specially the liquid household insecticides ) and new launches

Company’s percentage of revenues from South of India @ 38-39 pc

Disc : Holding, Biased, Not SEBI registered

[ranvir]

Mayur Uniquoters -

Q4 and FY 24 concall and results highlights -

Q4 outcomes -

Revenues - 221 vs 193 cr
EBITDA - 42 vs 35 cr ( margins @ 19 vs 18 pc )
PAT - 32 vs 23 cr

FY 24 outcomes -

Revenues - 803 vs 776 cr
EBITDA - 159 vs 139 cr ( margins @ 20 vs 18 pc )
PAT - 122 vs 104 cr

Due to the new introduction of BIS norms for the footwear industry, the off take for Company’s artificial leather was hit. The Industry players want to liquidate the existing stocks before the regulations kick in

Q4 sales breakdown -

Exports sales - 67 cr

Domestic sales - 147 cr ( Auto - OEM - 52 cr, Replacement - 40 cr, Footwear - 48 cr, Others - 7 cr )

OEM exports are likely to see significant pickup ( 20-25 pc YoY kind of growth ) in FY 25. Company expects their export sales to grow to 2.5 times in 3 yrs time

Footwear demand is likely to be tepid for FY 25. Company is letting go of low margin business. Only going for high margin / MNC branded business

PU revenues for Q4 were @ 6.5 cr

Company has acquired land in US for warehousing purposes. Also plan to set up a manufacturing facility there - in future

As exports pick up in FY 25, margins should improve further

Avg yearly capex at 30-40 cr / yr

Full FY 24 sales breakdown -

Export Auto OEM - 168 cr
Export General - 70 cr
Domestic Auto OEM - 185
Domestic replacement - 143 cr
Domestic Footwear - 190 cr
Others - 40 cr

Company’s products have good demand for making of upholstery in Boats, Ships, Yachts etc. These applications require very high quality products as these are exposed to excessive heat and humidity. But the margins here are higher. Company is trying hard to break into this mkt

Guiding for 20 - 25 pc growth in top and bottom line for FY 25

Disc : holding, biased, not SEBI registered

[ranvir]

Prince Pipes -

Q4 and FY 24 results and concall highlights -

Q4 outcomes -

Revenues - 740 vs 764 cr ( Volumes sold @ 51.4k MT vs 44.3k MT, up 16 pc )
EBITDA - 92 vs 148 cr ( margins @ 12 vs 19 pc )
PAT - 55 vs 94 cr

FY 24 outcomes -

Revenues - 2569 vs 2711 cr ( Volumes sold @ 172k MT vs 157k MT, up 10 pc )
EBITDA - 307 vs 250 cr ( margins @ 12 vs 9 pc )
PAT - 182 vs 121 cr

**Company acquired the bath ware brand - Aquel in Q4 for a total consideration of 55 cr **
( including for plant and machinery ). Its a popular brand in Western India

No of operational manufacturing plants @ 7 with total installed capacity @ 338k MT. The new manufacturing plant in Bihar is likely to start production in Q4 FY 25. Total no of warehouses @ 10

Company has product collaborations with -

Hauraton ( for drainage systems )
Lubrizol ( for CPVC plumbing compounds and products )
Tooling Holland ( for plastic injection moulding )
Skolan ( for premium - silent drainage systems )

Company is running a channel finance program worth 150 cr with 146 distributors currently listed in the program

Q4 volume growth led by - Agri, Infra and Plumbing verticals

Increase in receivables due strong demand in the month of March. Likely to come down in next 2 Qtrs ( already seeing the same )

Guiding for a 15 pc volume growth and 12-14 pc EBITDA margin range for next 2-3 yrs ( on the back of good demand from Infra, RE and Agri sectors )

Commodity prices are well behaved. Should aid business and margins. Stable prices drive good business hygiene and growth eventually

Bathware segment is currently nascent for the company. Did a sale of 10 cr for FY 24. Aquel acquisition should help increase growth in the bath ware segment

Normal yearly maintenance capex @ 50-60 cr

Current election season has had some adverse impact on demand from Infra segment. But infra is a relatively smaller segment for the company
( about 5 pc of sales ). Hence - no major demand compression in Q1

Advertisement spends for FY 24 @ 54 cr

Segment wise sales break up for the company -

Plumbing - 65 pc
Agri - 30 pc
Infra - 4 pc
Water storage - 1 pc

Company has taken price correction in last 1-2 months to improve their competitiveness

Top 4 players in Plumbing industry enjoy 70 pc mkt share

Company believes their 15 pc volume growth guidance is on the conservative side

Disc: holding, biased, not SEBI registered

[ranvir]

**Narayan Hrudalaya - **

Q4 and FY 24 results and concall updates -

Total hospitals -

India Hospitals -

South - 5 hospitals, 3 heart centers, 11 clinics

East - 7 hospitals, 4 clinics, 01 dialysis center

North - 4 hospitals, 01 clinic

West - 02 hospitals

Cayman Islands - 01 Hospital

Total - 19 hospitals, 16 clinics, 01 dialysis center

Total bed capacity @ 6074

FY 24 payor Mix -

Cash / Walk in - 43 pc
Insured - 27 pc
Govt schemes - 21 pc
International - 9 pc

Geographical Mix of revenues ( India business ) -

Bengaluru - 37 pc, grew by 7 pc
Southern peripheral - 6 pc, grew by 14 pc
Kolkata - 27 pc, grew by 6 pc
Eastern peripheral - 11 pc, grew by 5 pc
West - 6 pc, grew by 14 pc
North - 13 pc, grew by 3 pc

FY 24 financial outcomes -

Revenues - 5018 vs 4525 cr
EBITDA - 1152 vs 987 cr ( margins @ 23 vs 22 pc )
India EBITDA @ 778 cr
Cayman Islands EBITDA @ 500 cr
PAT - 790 vs 607 cr

Q4 financial outcomes -

Revenues - 1279 vs 1222 cr
EBITDA - 295 vs 276 cr
PAT - 191 vs 173 cr

Avg revenue / In-patient @ Cayman - Rs 25.7 lakh
Avg revenue / In-patient in India - 1.23 lakh

Cash on books @ 1258 cr
Gross Debt @ 1420 cr

Capex for FY 24 @ 900 cr

Hopeful of commissioning of a new Hospital in Cayman Islands in Aug 24

As more capacity gets added by the company at Cayman, the revenue per patient shall continue to moderate as the company shall be able to treat lesser complex cases and that would result in higher volumes. As this facility ramps up, it can be a nice trigger for earnings expansion

Company has existing land parcels in Bengaluru and has also acquired additional land parcels in Bengaluru and Kolkata for Greenfield capex. Most of the this Greenfield capex should begin in Q3 FY 25 and should get commissioned in about 3 yrs time

In FY 23 and FY 24, there was a lot of pent up demand and backlog for surgical work (post COVID). Hence the company is guiding for a mild - moderate growth in FY 25 ( in India business )

Company is likely to take on additional debt of 1200-1400 cr for the Greenfield expansions. Company may not use the cash on books as it is parked in the Cayman subsidiary and bringing it to India will not be tax efficient.Company is looking at overseas opportunities to deploy this cash. In the absence of such opportunities, company will take a 20 pc kind of Tax hit and bring the cash back

Despite the capacity constraints in the Domestic business and heavy lineup of Greenfield capex, company is guiding for low double digit growth rates ( not too sure if this is achievable… personal opinion )

NIL bed additions lined up for India business in FY 25

Company is planning to add - 20/30 clinics / yr for next 2-3 yrs to debottleneck the OPD work. These clinics are capital light ( investment required @ about 1-2 cr / clinic but it helps achieve much better patient throughput )

Disc: planing to add ( due correction in valuations ), growth in short term may be an issue, biased, not SEBI registered

[ranvir]

Electronics Mart India -

Q4 and FY 24 concall and results highlights -

Q4 outcomes -

Revenues - 1524 cr, up 15 pc
EBITDA - 108 cr, up 18 pc
PAT - 41 cr, up 12 pc

FY 24 outcomes -

Revenues - 6285 cr, up 15 pc
EBITDA - 449 cr, up 34 pc ( margins @ 7.2 vs 6.2 pc )
PAT - 246 cr, up 51 cr

Number of stores added in Q4 - 12 ( all 12 are multi brand outlets )

Number of stores added in FY 24 - 33 ( all 33 are multi brand outlets ) - 13 each in AP, Telangana, 07 in Delhi NCR

Breakup of revenues ( product wise ) -

Mobiles - 42 pc
Large appliances - 45 pc
Small appliances, Laptops and IT peripherals - 13 pc

Yearly sales / Store @ 36 cr

Cash on books @ 85 cr

Total stores ( area wise ) -

Telangana - 97 { 87 MBOs ( multi brand outlets ) + 10 EBOs ( exclusive brand outlets ) }

AP - 41 ( 39 MBOs + 02 EBOs )

Kerala - 01 MBO

Delhi NCR - 21 ( 20 MBOs + 1 EBO )

Total - 147 MBOs + 13 EBOs

Operations in Delhi NCR started in Aug 22. Expect this region’s profitability to ramp up to South Cluster’s levels in 2-3 yrs

Region wise same store growth -

Telangana - 10 pc
AP - 22 pc
Delhi NCR - 94 pc

No plans to enter any new markets for the time being

Same Store growth for FY 24 @ 8.8 pc ( which is healthy )

Top 5 brands contribute to 60 pc of Company’s sales

Management believes that the strong growth in AC sales will get reflected in Q1 sales

To get to EBITDA margins of 5-6 pc in Delhi NCR, company needs these NCR stores to clock > 35 cr/yr per store sales

For FY 25, company is guiding for 15 plus + topline growth. Likely to maintain similar EBITDA margins as FY 24

Even for FY 25, a lot of store expansion focus shall be on the NCR mkts ( going to open another 14 stores in NCR in FY 25 … this includes adjacent mkts of Western UP, Haryana, Noida, Gaziabad etc ). That will take the total store count in this region to 35

Outside NCR, company intends to open 10 - 12 stores in South Mkts in FY 25

When a company opens a new store in Tier - 1 Mkts, it expects the store to ramp up up 60 cr + plus kind of annual sales by the end of 3rd year of operation. For Tier -2,3 stores, this expectation is 35 - 40 cr +

Capex + Inventory for a new store opening ( avg size - 10,000 sq ft ) is generally - 2.5 cr + 2.5 cr = 5 cr / store

Blended gross margins for the company are around 14-15 pc. For large appliances, GMs are around - 16-18 pc. For Mobiles, Laptops etc, they r lower

Disc: holding, biased, not SEBI registered. Also holding Aditya Vision Ltd. Basically bullish on electronics retail space

[ranvir]

Gabriel India -

Q4 and FY 24 results and concall highlights -

Q4 outcomes -

Revenues - 858 vs 737 cr, up 16 pc
Gross margins @ 25.1 vs 23.7 pc
EBITDA - 77 vs 52 cr, up 47 pc ( margins @ 9 vs 6 pc )
PAT - 53 vs 34 cr, up 55 pc

FY 24 outcomes -

Revenues - 3342 vs 2971 cr, up 9 pc
Gross margins @ 25.1 vs 23.7 pc
EBITDA - 293 vs 213 cr, up 37 pc ( margins @ 9 vs 7 pc )
PAT - 185 vs 132 cr, up 40 pc

Net cash position - 300 cr

Last 10 yr sales CAGR @ 9.8 pc
Last 10 yr PAT CAGR @ 13.3 pc

Segment wise sales mix -

2W - 61 pc
PVs - 25 pc
CVs - 12 pc
Trading - 2 pc

Channel wise sales mix -

OEM sales - 86 pc
After Mkt sales - 11 pc

PV market did well in FY 24 on the back of strong SUV sales. CV sales were flat for FY 24. Expecting a CV sales pick up after monsoons

2W+3W sales did well in FY 24 crossing 2cr vehicles sold ( last time this happened was in FY 20 )

Company is supplying to almost 100 pc requirements of leading EV 2-wheeler customers - OLA, TVS - Electric and Ather

Company does supply to all 3W makers - Bajaj, Atul and TVS

Company’s sunroof plant commenced operations in Q4. Did a sales for 59 cr and reported a positive EBITDA for the same. Company sold 23k sunroofs in Q4. That translates to Rs 24k / sunroof

Likely to sell > 10k sunroofs in Q1. Company is supplying to both Kia and Hyundai. Company intends to generate mid teens EBITDA margins from this unit before FY 26. Current capacity of the plant is around 2 lakh sunroofs / Yr. Once the company is able to sell 2 lakh sunroofs / yr, the annual revenue run rate should be > 400 cr from this vertical

There has been a slowdown in the 2W EV sales post 31 Mar due ending of FAME - II incentives. However, since the prices of Li-Ion batteries are continuously coming down, this slowdown should be temporary

Company’s sales from EV-2W in FY 24 were around 150 cr

Company to start supplying the shock absorbers for the new Swift wef FY 26. Likely to do an annual revenue of 90-100 cr from this business

Company expects to do an EBITDA margins of 10 pc for full FY 25

Company is gonna supply cabin Dampeners to DAF for the European + Brazilian Mkts wef late FY 25. This has the potential to be a 25 cr / yr kind of business. Company is also hoping to get orders for Axle dampers from DAF. That can potentially open up a big mkt for the company

Company is in active talks with 2 PV OEMs for exports. Likely to receive orders by end of FY 25. Revenues may accrue only in FY 27

Company is expecting a mid-teens growth from the after sales mkt. Company has also launched brake pads in the after sales mkt - leveraging the Gabriel Brand

Disc: holding, biased, not SEBI registered

[ranvir]

Steel Strip Wheels -

Q4 and FY 24 concall highlights -

Total manufacturing capacity -

Steel Wheels - 200 lakh @ 78 pc utilisation. This capacity is slated to expand to 270 lakhs in FY 25

Alloy wheels - 36 lakh @ 82 pc utilisation. This capacity is slated to expand to 48 lakhs in FY 25

No of manufacturing plants - 05

Sales contribution from Steel : Alloy wheels @ 72:28 vs 69:31 in FY 23 ( in value terms )

Domestic PVs mkt share @ 42 pc
MHCV mkt share @ 61 pc
Tractor mkt share @ 42 pc
OTR mkt share @ 70 pc

Key models to which company is supplying alloy wheels to include - Creta, Alcazar, Venue, Carnival, Sonnet, Nexon, Punch, Salvia, Astor, Verna, Aura. Company is in talks with Maruti Suzuki for supply of alloy wheels. Supplies may commence by next FY

Export : Domestic revenues breakup
@ 15:85

Export sales grew by 116 pc from 293 to 634 cr in FY 24

Q4 financial outcomes -

Sales - 1069 vs 1005 cr, up 6 pc
EBITDA - 111 vs 108 cr, up 2.5 pc ( margins @ 10.4 vs 10.8 pc )
PAT - 60 vs 47 cr

Alloy wheel volumes @ 8 vs 7 lakh
Steel wheel volumes @ 39 vs 38 lakh

FY 24 financial outcomes -

Sales - 4357 vs 4041 cr, up 8 pc
EBITDA - 465 vs 443 cr, up 5 pc ( margins @ 10.7 vs 11 pc )
PAT - 220 vs 194 cr, up 13 pc ( due lower tax outgo as the company has opted for new tax regime )

Alloy wheel volumes @ 30 vs 28 lakh
Steel wheel volumes @ 160 vs 148 lakh

Long term Debt @ 487 cr. Total Debt @ 1048 cr
( due aggressive incremental Capex and acquisition of AMW autocomponents )
Cash on books @ 31 cr

Completed the acquisition of AMW autocomponents in FY 25 ( they also make steel wheels )

Seeing slowdown in CV sales in Q1 due ongoing elections

Company looking to sell 200 lakh wheels
( alloy + steel ) in FY 25 vs 190 lakh in FY 24. Expecting 10 pc growth in the exports business. Alloy wheels export business doing well. Overall topline growth guidance for FY 25 is also @ 10 pc

Expect to start generating revenues from their Aluminium Knuckles business. SSWL is the first company in India to make Al-Knuckles. It’s an import substitute product. Have signed up with 2 OEMs for supply of these Knuckles ( mainly used in SUVs ). Expecting to do a business of around 35 cr in FY 25, 70 cr in FY 26 and around 140 cr in FY 27 from this segment

Expecting the growth rates to increase in the alloy wheels segment wef FY 25 ( that should be margin accretive )

Company did face a lot of pricing issues wrt their steel wheels business in FY 24. They r in talks with 2 major OEMs for a price revision. They r hopeful of a positive outcome in near future. Also in talks with Maruti-Suzuki for supply of alloy wheels. That may also materialise going forward. These are key positive triggers lined up for the company

The current debt figures are likely to be the peak debt figures. Not planning to take on any additional debt

In FY 25 - growth is mainly gonna come from tractor wheels, exports and alloy wheels business - all these r margin accretive ( vs domestic steel wheels business for PVs + CVs ) - this is likely to have a positive impact on EBITDA margins. Plus there r fair chances of breakthrough on the price negotiations that the company is having with OEMs for domestic steel wheel pricing

Company’s main competitors for exports are based out of Malaysia, Vietnam. However, they do have a higher freight disadvantage vs an Indian manufacturer

Disc: holding, biased, not SEBI registered

[ranvir]

Carysil -

Q4 and FY 24 concall and results highlights -

Q4 outcomes -

Sales - 191 vs 146 cr
EBITDA - 35 vs 26 cr ( margins @ 18 pc - flat YoY )
PAT - 16 vs 12 cr

FY 24 outcomes -

Sales - 684 vs 594 cr
EBITDA - 129 vs 110 cr ( margins @ 19 vs 18 pc )
PAT - 58 vs 53 cr ( due higher depreciation, interest costs and higher tax rates )
ROE @ 17.4 pc

Only company in Asia to manufacture Quartz Sinks. Current capacity @ 10 Lakh sinks / yr. Company makes 150 different sizes / designs of the same. 50 pc of company’s topline comes from Quartz Sinks segment. 28 pc of topline is contributed by the solid surfaces segment

Company’s steel sinks capacity @ 1.8 lakh sinks / yr. Company only caters to the premium segment. SS sinks contribute to 11 pc of topline

10 pc of topline contribution comes from selling Kitchen appliances ( Company also makes some of them, and trades in others )

India business growth for FY 24 was tepid @ 6 pc. This is an industry wide phenomenon ( ie building materials Industry ). Aim to grow by 15-20 pc in FY25. Company’s focus remains the luxury and premium products. To keep pursuing the B2B segment - ie directly selling to builders

Company is planning to raise upto 150 cr via QIP

UK contributes to 30 pc of company’s topline. Getting good orders from Howdens UK ( a big - organised retailer )

Exports : Domestic sales breakup @ 80 : 20. All of India sales are recorded under company’s brand - Carysil. Only 20 pc of export sales are under company’s brand name. Aim to take this up to 30 pc in the medium term

Higher freight costs due Red Sea crisis impacted the EBITDA margins by 100-150 bps in Q4

Company is guiding for 20 pc organic growth + 150 cr topline kind of Inorganic acquisition to meet their 1000 cr topline guidance for FY 25

Avg realisation / Quartz sink is around Rs 5500. For steel sink, its around Rs 4200

Disc: hold a tracking position, biased, not SEBI registered

[ranvir]

IKIO Lighting -

Q4 and FY 24 Concall and results highlights -

Q4 outcomes -

Sales - 94 vs 114 cr , down 18 pc
EBITDA - 17 vs 26 cr, down 26 pc ( margins @ 18 vs 22 pc. However the gross margins expanded by 7 pc to 42 vs 35 pc YoY !!! )
PAT - 9.5 vs 14 cr, down 31 pc

FY 24 outcomes -

Sales - 438 vs 446 cr, down 2 pc
EBITDA - 93 vs 99 cr, down 7 pc ( margins @ 21 vs 22 pc, however the gross margins expanded by 3 pc to 41 vs 38 pc YoY )
PAT - 61 vs 65 cr, down 7 pc

FY 24 - RoE @ 20 pc, RoCE @ 23 pc

Completed Block -1 of Greenfield expansion of 2 lakh sq ft. Trial production has started. Expected to complete Block - 2 of another 2 lakh sq ft by Mar 25. Have started construction for block -3 of another 1 lakh sq ft. Combined capex spend for all three blocks is around 200 cr with a total yearly revenue potential of 1000 cr
( incremental. It may take 3-4 yrs to reach optimum capacity utilisation for all 3 blocks )

Have started manufacturing new product segments like - Earphones, Smart Watches, Solar panel components

Accelerated weakness in Q4 is due to slowdown in Exports. Seeing descent recovery in Q1. Addition of overhead and employee expenses ( due new block -1 going commercial ) led to the dip in EBITDA margins in Q4

Expecting revenues to grow by > 20 pc in FY 25 with EBITDA margins in 20-22 pc band for FY 25. Expecting strong growth in H2 FY 25. A lot of incremental growth to be driven by newer products and categories that company is venturing into

Most of company’s existing LED Lighting facilities are dedicated to supply to Signify Ltd ( selling under the PHILIPS brand name in India ). With new capacities coming on stream, company to supply to additional customers

A lot of customers are visiting company’s new manufacturing block. Receiving very positive response from them. Likely to materialise into good long term partnerships / orders. The new facilities are likely to do asset turns of 5-6 times once they reach optimum capacity utilisation

Exports demand to GCC and USA are picking up. Overstocking related issues are behind

Expect domestic demand to pick up post election results

Company did admit that China + 1 is a significant tailwind for the company

Disc: holding, biased, not SEBI registered ( no other contract manufacturer in electronics space makes a double digit EBITDA margins. IKIO’s margins are generally > 20 pc !!! )

[ranvir]

Windlas Biotech -

Company overview, Q4 and FY 24 results and concall highlights -

Its a contract maker of generic formulations for Domestic branded companies, GoI ( Jan Aushadhi Kendras ) and also export generic formulations

Vertical wise revenue split -

Generic Formulations CMO Domestic - 77 pc of sales. Last 5 yrs sales CAGR @ 14 pc
Trade generics + Govt Supplies - 19 pc of sales. Last 5 yrs sales CAGR @ 42 pc
Exports - 4 pc of sales. Last 5 yrs sales CAGR @ 45 pc

Therapy wise revenue split -

Acute therapies - 34 pc of sales
Chronic therapies - 66 pc of sales

Product wise revenue split -

Complex generics - 64 pc
Conventional generics - 36 pc

Focus therapy areas - Respiratory, Anti-Diabetic, GI

No of manufacturing facilities @ 4. All 4 located in and around Dehradun. Dosage forms manufactured - oral solids, chewable, liquid bottles, sachet / powdered products, Injectables. Injectables facility commenced operations in Mar 24

Q4 outcomes -

Sales - 171 vs 141 cr, up 22 pc
EBITDA - 22 vs 16 cr, up 34 pc ( margins @ 13 vs 12 pc )
PAT - 17 vs 11 cr, up 48 pc

FY 24 outcomes -

Sales - 631 vs 513 cr, up 23 pc
EBITDA - 78 vs 60 cr, up 30 pc ( margins @ 12 vs 12 pc )
PAT - 58 vs 43 cr, up 37 pc
CFO > 100 cr for FY 24
Cash on books @ 206 cr as on 31 Mar 24

GoI planning to triple the number of Jan Aushadhi stores to 25k inside next 2 yrs. should act as major catalyst to the Trade generics segment

Company’s CMO - domestic vertical grew by 20 pc in FY 24 - that’s 3X of IPM

As company’s capacity utilisation grows (and specially for injectables segment which is a high margin segment) - company’s EBITDA margins should expand going forward

Guiding for 1000 cr topline in FY 26
Capex guidance for FY 25 @ 20 cr for expansion of Dehradun plant - 2. For FY 26, it should be around 30-35 cr

The Capex spend for the Injectable facility was @ 75 cr

Company’s trade generics segment generates greater EBITDA margins vs CMO for branded companies as the company gets to retain the distribution margins in addition to the manufacturing Margins

Govt’s focus on better quality of generic medicines and crackdown on non-compliant players is a structural tail wind for the company

At peak capacity utilisation, the Injectables facility can do an asset turns of 1.2 times ( so that amounts to 90 odd cr of annual revenues. However, the EBTDA margins here are > 15-16 pc )

Company’s expansion plans for medium - long term will be a mix of organic + inorganic - given the healthy cash flow generation by them

Company’s employee costs are in the 13-14 pc band vs Innova Captab’s 7-8 pc band. Company believes that employee cost is an investment

Company believes that complying with all GMP / Schedule M regulations is not easy for smaller non-compliant players. It does cost significant money and a complete change in operating mindset

Disc: holding, biased, not SEBI registered

[ranvir]

Royal Orchid Hotels -

Q4 and FY 24 concall and results highlights -

Company’s portfolio -

107 Hotels and resorts @ 70+ locations. Total Room inventory @ 6215 rooms. Total restaurant count @ 175

Ownership wise inventory of rooms -

Owned / JV Hotel rooms @ 591 - no addition in FY 24

Leased Hotel rooms @ 1112, up 94 pc YoY

Managed / Franchise rooms @ 6520, up 23 pc YoY

FY 24 and Q4 occupancies and Avg Room rates -

Q4 data -

Occupancy for Owned, JV, Leased hotels @ 72 vs 77 pc YoY. Their ARR @ Rs 6024 vs 5657

Occupancy for Managed, Franchise Hotels @ 65 vs 63 pc YoY. Their ARR @ Rs 3982 vs 3833

FY 24 data -

Occupancy for Owned, JV, Licensed hotels @ 74 vs 77 pc YoY. Their ARR @ Rs 5673 vs 5370

Occupancy for Managed, Franchise hotels @ 60 vs 63 pc YoY. Their ARR @ Rs 4039 vs 3795

Hotel Room inventory breakdown - Segment wise -

5 Star rooms - 407 ( 268 owned, 139 in JV )

4 Star rooms - 2673 ( 130 owned, 396 leased, 2147 managed / franchise )

Service Apartments - 138 ( 67 leased, 71 managed / franchise )

Resorts / Heritage - 949 ( 54 JV, 142 leased, 753 managed / franchise )

3 star / Budget - 1759 ( 83 leased, 1676 managed / franchise )

Q4 outcomes -

Revenues - 83 vs 77 cr
EBITDA - 24 vs 26 cr
PAT - 17 vs 13 cr

FY 24 outcomes -

Revenues - 312 vs 279 cr

EBITDA - 95 vs 98 cr ( invested aggressively behind hiring talent / employees in FY 24 - due rapid ongoing expansion. This has led to margin compression in FY 24. This should normalise in FY 25,26. Also spent aggressively on refurbishment / maintenance of old hotels in FY 24 )

PAT - 50 vs 49 cr
RoCE @ 20 pc

**Breakup of FY 24 revenues - **

Segment Wise -

Room rent - 170 vs 155 cr
F&B - 114 vs 102 cr
Other services - 12 vs 10 cr
Franchise / Management fee - 30 vs 24 cr

Ownership Wise -

Revenues from owned hotels - 97 vs 88 cr
Revenues from JV hotels - 76 vs 81 cr
Revenues from Leased hotels - 121 vs 96 cr
Franchise / Management revenues - 30 vs 24 cr

In Q4, company acquired remaining 49 pc stake in IKON hospitality ( running a hotel at Mumbai Airport ) for 34 cr

Aim to add 1500 rooms under management / franchise model + 400 rooms under the lease model in FY 25

Aim to do 370-380 cr of topline in FY 25. Aim to grow EBITDA by 10-15 pc only for FY 25. Again, the aggressive expansions lined up for FY 25 may not allow a margin expansion. Margin expansion may only happen in FY 26

Slated to open a new 300 room 5 star hotel in Mumbai in the middle of FY 25. Company to pay yearly rental of 36 cr for this property ( fixed for next 5 yrs ). Likely to do a topline of 100 to 120 cr / yr. Full ramp up expected to happen in FY 26. Expecting to do an additional EBITDA of 15 -20 cr from this property from FY 26 onwards

Aim to grow ARRs by 5-6 pc in FY 25

Company to add 28 rooms in their flagship Bengaluru property

Post elections, Company expects the corporate demand to pick up in a big way

Post FY 25, company is likely to go slow wrt addition of more managed / franchise hotels. They ll take time to consolidate their gains and ensure better quality service and incorporate learnings for the company. Plus they have reached a descent scales wrt recipt of management fee @ > 30 cr / yr

The company’s management contracts are not fixed rate contracts. These r basically a percentage of revenue share and vary from property to property

Disc: holding, biased, not SEBI registered

[ranvir]

**Focus Lighting - **

Q4 and FY 24 concall highlights -

Q4 outcomes -

Sales - 60 vs 41 cr
EBITDA - 14 vs 8 cr ( margins @ 23 vs 20 pc - very healthy margins for a manufacturing company )
PAT - 11 vs 6 cr

FY 24 outcomes -

Sales - 224 vs 168 cr
EBITDA - 46 vs 33 cr ( margins @ 21 vs 20 pc )
PAT - 39 vs 23 cr

Breakdown of Q4 revenues -

Retail Lighting ( high end / specialised lighting solutions for brick and mortar retail outlets ) - 31 vs 32 cr

Home lighting ( company is into high end home lighting unlike most other players like - Havells, CG Consumer, Surya etc ) - 26 vs 8 cr

Infra Lighting ( basically - projects / orders based business ) - 2 vs 10 cr

Railways - 0.1 vs 0.4 cr

Company’s retail lighting is primarily sold under PLUS - brand name

Company’s MD gave out a presentation on the kind of cutting edge / unique lighting solutions that the company has developed / is developing. Its a must watch for anyone trying to understand the moats that the company is building

Company’s retail clients include - Mercedes, Volvo, Porsche, Citroen, BMW, Tata Retail, Reliance Retail, Ikea, Lenskart etc

Some marquee projects where company has done the lighting work include - Central Vista - Parliament, Surat Fort, Guwahati Airport, ITC - Shanghai, Mumbai Airport etc

Reliance is the biggest retailer in India. Company expects Reliance retail to be back to aggressive expansion mode wef Q3 this year. That’s when they see a lot of domestic retail business to come to them

Retail segment in ME markets is doing well

Overall, guiding for > 15 pc growth in retail segment for FY 25

Expect to see high growth coming from Home and Infra segments for FY 25

All verticals combined, company is guiding for 30 pc kind of topline growth with margins at current levels

Avg ticket size per retail store ( except very large format stores like IKEA ) @ Rs 20 lakh to Rs 1 cr. For Infra, its Rs 5 to Rs 40 cr depending on project to project. For Homes, its between Rs 5 lakh - Rs 3 cr per house

Company is going to enter the trade segment in 6-8 months. Initially, the company will get into contract manufacturing for the bigger brands. But the company will only make the differentiated products. In medium term, company also intends to develop its own brand

Disc : holding, biased, not SEBI registered

[ranvir]

Pratap Snacks -

Some highlights from Q4 and FY 24 results -

FY 24 outcomes -

Revenues - 1618 vs 1653 cr
EBITDA - 141 vs 63 cr ( margins @ 9 vs 4 pc - massive margin expansion !!! )
PAT - 53 vs 20 cr

Q4 outcomes -

Revenues - 388 vs 387 cr
EBITDA - 35 vs 19 cr ( margins - 9 vs 5 pc - massive margin expansion )
PAT - 12 vs 22 cr ( had some tax reversals in Q4 FY 23 )

Rural demand continues to be tepid vs the Urban demand

Margin expansion mainly led by - restructuring of distribution channel and margins, cost optimisations and process improvements

Focussing on sales force automation to further reduce costs and to improve decision making using data analytics

Increased share of Namkeens in the company’s portfolio is also margin accretive

New Jammu and Rajkot plants have been operationalised recently. Jammu facility has a revenue potential of 160 cr at full capacity

Hopeful of a rural revival which should aid company’s growth and margins. Seeing some green shoots in Q1. If they sustain, company aims to do a double digit revenue growth for FY 25

In FY 24, company’s Namkeens portfolio contributed 16 pc of sales and grew by 15 pc YoY. All other categories de-grew marginally
( Extruded snacks, Potato chips, Sweet snacks )

Company has recently been listed in D-Mart, Reliance retail. This should help aid margins as more of high volume packs are sold through modern retail channels

Company’s core target consumers are middle class and below - both in rural and urban markets (unlike for players like ITC, Pepsi etc who mainly target middle class and above )

Confident of maintaining EBITDA margins > 8 pc for FY 25 ( there may be Quarterly variations ). The ultimate aim is to go to double digit margins on a sustainable basis

Aim to realise 50 - 100 cr sales from export ( basically Middle East ) markets inside next 2 yrs

Out of 20 lakh outlets at which company’s products are available, namkeen is available at only 5 lakh outlets. Clearly, there is a lot of scope for growth in this segment

Company’s overall capacity utilisation is @ 55 odd pc. Not likely to incur any major Capex expenses over next 2 yrs

Potential of yearly sales from Reliance Retail + D Mart for the company is around Rs 50 cr / yr

Marketing and sales promotion spends for FY 24 @ 1.5 pc of sales

Disc: hold a tracking position, may add if rural recovery sustains, biased, not SEBI registered

[ranvir]

Insecticides India -

Q4 and FY 24 highlights -

Current manufacturing capabilities -

02 Active ingredient plants
06 Formulation plants
01 Biologicals plant
04 R&D centers, Team of 60+ scientists

Capacities -

Active Ingredients ( AIs ) - 15,800 MTPA

Formulations -

Granules - 80,750 MTPA
Powder - 24,770 MTPA
Liquids - 30,900 MTPA

Company is currently making 21 AIs and over 120 formulations

Product wise sales breakup -

Insecticides - 45 pc
Herbicides - 40 pc
Fungicides - 11 pc
Biologicals and PGRs - 4 pc

Segment wise sales breakup -

Branded formulations - 68 pc
B2B sales - 27 pc
Exports - 5 pc

Company is setting up a new AIs + Formulations facility at Behror in Rajasthan. Should go commercial in CY 24

FY 23 saw extreme pressure on profitability due - collapse in export demand ( due overstocking situation ) and inventory write down that company had to take due steep fall in AI and RM prices. Both these factors have reversed to a great extent ( though not fully ) by the end of FY 24

Long term prospects for agrochemical exports from India remain positive - due China + 1. Even the GoI is pushing for increased manufacturing of AIs in India

FY 24 outcomes -

Revenues - 1966 vs 1801 cr, up 9 pc ( new product sales @ 512 cr ie the products launched over last 5 yrs )

EBITDA - 163 vs 122 cr, up 33 pc (margins @ 8 vs 7 pc YoY. Margins in FY 22 were at 11 pc)

PAT - 103 vs 63 cr, up 62 pc

Working capital days @ 150 vs 169

Company has a range of Value Added ( company calls them Maharatna products ) which contribute 60 pc of branded formulation sales. These products grew by 27 pc in FY 24

Total product launches in FY 24 @ 8 products. These products clocked a sales of 50 cr for FY 24

Exports continued to be weak in FY 24 as well. Expecting a recovery in FY 25 as over stocking issues are completely resolved

Aim to take EBITDA margins into double digits inside next 1-2 yrs ( opinion : if this happens, PAT may get a big kicker )

FY 24 volume growth was 20 pc. Topline growth was only 9 pc due price deflation in most products

Aim to take value added sales ( Maharatna products ) beyond 65 pc before FY 26

Company’s domestic formulations mkt share @ 5.5 pc

75 pc of company new product introductions are 9(3) registrations. This improves their pricing power ( incrementally ). Also intend to launch at least 1 product each / yr for next 4-5 yrs in collaboration with Nissan Chemical corporation. These JV products have a gross margins of around 30 pc ( avg of new + old JV products ). Generally, Nissan gives each product to 2-3 players for distribution

Avg gross margins for Maharatna range of products is 35 pc ( varies from 30-40 pc - varying from product to product ). Company level gross margins are currently at 25 pc. Company expects them to inch upto 30 pc - as the agrochemicals mkt recovers in FY 25,26

Seeing much better demands trends in Q1

Disc: initiated a tracking position, hoping for a margin recovery in Q1, Q2. This may provide a 20-30 pc bump in the stock price, biased, not SEBI registered

[ranvir]

Advanced Enzymes -

Q4 and FY 24 concall and results updates -

FY 24 outcomes -

Revenues - 623 vs 540 cr, up 15 pc
EBITDA - 204 vs 156 cr, up 31 pc ( margins @ 33 vs 29 pc )
PAT - 137 vs 103 cr, up 32 pc

Q4 outcomes -

Revenues - 157 vs 138 cr, up 14 pc
EBITDA - 55 vs 44 cr, up 26 pc ( margins @ 35 vs 32 pc )
PAT - 29 vs 32 cr ( due exceptional charge of 15 cr in Q4 FY 24 )

Category Wise sales break up for FY 24 -

Human nutrition - 67 pc of sales , grew by 18 pc
Animal nutrition - 11 pc of sales, degrew by 5 pc
Industrial bioprocessing - 16 pc of sales, grew by 21 pc
Specialised manufacturing - 6 pc of sales, grew by 19 pc

Geography wise sales break up for FY 24 -

India - 50 pc of sales, grew by 21 pc
Americas - 34 pc of sales, grew by 34 pc
Europe - 6 pc of sales, grew by 12 pc
Asia - 7 pc of sales, de-grew by 3 pc
RoW - 3 pc of sales, grew by 78 pc

Have received fresh US FDA approvals for 02 of their enzymes to be launched in US

Top 10 customer contributed to 26 pc of topline vs 24 pc in FY 23

R&D expenses @ 4.6 pc of topline

RM prices have been stable in FY 24, expect the same to continue

Human nutrition business has the highest gross margins

Expect topline to grow in double digits ( in 13 - 16 pc band ) in FY 25 along with Gross and EBITDA margin expansions

Industrial BioProcessing is a key focus area. This segment has a long growth runway ahead

Expect growth in US to be in double digits in FY 25 as well

Company’s US business currently has EBITDA margins of 37 pc vs 29 pc for India business

Disc: holding, biased, not SEBI registered